Don't let negativity get you down

Hong Kong House price to drop 25%

Through the last 10 years we have seen that bricks and mortar aren’t as safe as houses as people believe . People buy property for 3 reason , to live , as investment or to run a business .

Most people that buy as a investment have the illusion property will continue to go up in prices but sadly this is never the case. As we saw in the great crash of 2007/8 this was all based on people not been able to pay the mortgage . During that time what as apparent is people forgot the basic rules of finance, what you borrow you must pay back & something is only worth what someone is willing to pay for it .

According to an analyst report, Hong Kong home prices are expected to drop as much as 25%, on the back of government measures to curb an asset bubble and as banks raised their mortgage rates.

In the week that ended on April 14, an index that tracks home prices dropped the most in almost three years after the government introduced its toughest measures yet to cool prices in February. Analysts led by Kenneth Tsang wrote in a report today that consequently, the number of new apartment sales will remain largely subdued as developers shift their focus to cheaper and smaller units to boost sales.

Moreover, Deutsche Bank AG said in a report last month that house price in Hong Kong Prices could fall as much as 20% over the next two years.

It has been said that Cheung Kong Holdings, which lowered prices by almost 10% last month, may introduce even more price cuts to boost sales.

As a result of the expected drop in home prices, analysts assigned an underweight rating to Hong Kong developers and are advising investors to sell Henderson Land Development Co. because of its strong competition.